Commercial bonds are surety bonds that cover a wide range of industries. Businesses are often required to maintain an active commercial bond by state legislation.
They are used both as protection for consumers and to help ensure that businesses follow the appropriate rules and regulations of operating a business in their state. There are many types of commercial surety bond that range from alcohol liquor license bonds to yacht broker bonds. Some are only used in used in certain states but many are commonly used throughout the country.
Let’s take a look at some of the common and not so common types of commercial surety bonds:
Contractor License Bond
Contractors in many states are required to take out a contractor bond in order to become a licensed contractor. The required bond amount varies by state! They are used to help protect consumers from dishonest contractors.
Mortgage Broker Bond
In order to become a licensed mortgage broker in some states, brokers may be required to obtain and maintain a mortgage broker bond. These bonds are there to help protect the public from unscrupulous brokers.
Texas P-5 Surety Bond
This bond is used to protect the environment in Texas from contamination by the oil and gas industry! The Railroad Commission of Texas requires that businesses in the industry take out these bonds to assure compliance with all applicable laws in the state.
Yacht Broker Bond
Unsurprisingly, the Yacht Broker bond is only used in a few states. California requires yacht and ship brokers to take out a $15,000 commercial surety bond to provide protection for buyers.
Marijuana Surety Bonds
The use of these types of bonds is growing as more and more states are legalizing marijuana use for both personal and medicinal purposes. Marijuana surety bonds are used to ensure businesses operating in this industry comply with all laws and regulations regarding growing and supplying the substance.
The Centers for Medicare and Medicaid Services (CMS) require some medical equipment suppliers to maintain a Durable Medical Equipment, Prosthetics, Orthotics, and Supplies bond at all times. This makes the surety underwriter liable for any unpaid claims made by the CMS on the equipment supplier.
Get the commercial bond you need, today!
Viking Bond Service makes the application process for commercial surety bonds quick and easy. In fact, most commercial bonds can be applied for using our online application form.